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SEC proposes Regulation A+ exemption for smaller companies

  • SEC (US Securities and Exchange Commission) Image

Dec 18, 2013

At today's open meeting, SEC Chair Mary Jo White announced that the SEC has issued a proposed rule intended to increase access to capital for smaller companies. The proposal creates a new exemption from registration under the Securities Act for offerings of up to $50 million in a 12-month period.

Known as Regulation A+, the proposed rule amendments would update and expand the Regulation A exemption by creating two tiers of Regulation A offerings:

  • Tier 1 would consist of those offerings already covered by Regulation A: securities offerings of up to $5 million in a 12-month period, including up to $1.5 million for the account of selling securityholders.
  • Tier 2 would consist of securities offerings of up to $50 million in a 12-month period, including up to $15 million for the account of selling securityholders.
  • For offerings up to $5 million, the company could elect whether to proceed under Tier 1 or Tier 2.

Comments on the proposal are requested by March 24, 2014.

For more information, see Deloitte's Accounting Journal Entry, the proposed rule, and press release on the SEC's Web site. Speeches from today's open meeting on Regulation A+ are also available on the SEC's Web site:

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